Honda Motorcycle & Scooter India (HMSI) is planning to launch an EV version of its popular two wheeler, the Activa. As the electric scooter market in India is gaining pace, the company plans to take a fair share of the market with the launch of the Activa EV in the year 2025. Currently, Honda does not have an EV two-wheeler in the Indian market.
Recently, Honda has added two new production lines in its Gujarat and Karnataka plants to boost production. These new production lines are added as the company prepares to start the manufacturing of the Honda Activa EV by December 2024 at its Karnataka facility.
There are no official confirmations, but we can expect the Honda Activa EV to be priced at around Rs. 1.10 lakhs. For comparison, the ICE Honda Activa is priced at Rs. 76000. Other specifications such as range, battery size, variants, and power figures are still under wraps. Upon launch, the Activa EV will compete with EV scooters such as Ather 450X, Bajaj Chetak, TVS iQube, and Ola S1 Pro.
HMSI had previously slowed its expansion due to the implementation of BS6 emission norms and the impact of COVID-19. The new production lines are set to increase HMSI’s output capacity by a significant number.
The third line at the Gujarat factory is expected to contribute an additional 6.6 lakh units to the company’s annual production volume. Additionally, a dedicated line for electric vehicles will be set up in FY25. This move aligns with the company’s plans to manufacture EV two-wheelers by the second half of 2025. This expansion will raise the company’s overall annual manufacturing capacity by about 9 lakh units.
The company is optimistic about the future and targets a double-digit growth rate of over 15% for FY25. This would be the fourth consecutive year of growth as the market continues to recover to pre-COVID levels. The company expects its total output volume to reach around 5.75 million units in FY25, which would nearly match its peak of 5.9 million units in FY19.
For the next financial year, HMSI is anticipating an 11% increase in scooter production, which will exceed 3 million units. On the other hand, motorcycle production is expected to grow 23%, which will translate to a sales volume of 2.65 million units.
Last financial year, the company recorded a 13% growth in domestic sales. This means the company sold about 4.5 million units, capturing a 25% share of the total two-wheeler market.
In FY24, HMSI sold approximately 2.5 million scooters, capturing a market share of 43%. However, a slight decline of about 250 basis points was seen due to new competitors in the EV sector claiming their market share. On the other hand, the motorcycle segment of HMSI saw an increase, with sales of about 2 million units and a market share growth of 150 basis points. The sales of the Shine 100 model contributed highly to this growth rate.
The post Honda Activa EV: Production Line Prepared Ahead Of Launch first appeared on Cartoq.
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